‘‘Challenging trading conditions have driven competitors with higher cost bases out of the market, enabling JB Hi-Fi to continue to grow both its store network and market share.

‘‘We are very well-positioned for any rebound in consumer spending.”

The company said the upcoming sale of Dick Smith Electronics contributed to the decline in group profit but expects to lift group sales 5.5% to $3.3bn in 2013 with the opening of 16 new stores across the country.